Subscribe to our free, weekly email newsletter!


USA Truck adds domestic containers to intermodal offerings through a deal with BNSF

By Jeff Berman, Group News Editor
August 23, 2010

Dry van truckload carrier USA Truck has expanded its intermodal menu, announcing it recently inked a long-term contract with Class I railroad carrier BNSF Railway to move private 53-foot domestic intermodal containers.

Company officials said USA Truck moved its first rail intermodal load in December 2007 and two years later had 69 percent year-over-year intermodal growth in 2009 and 50 percent growth for the first half of 2010. They said the majority of that revenue came from intermodal trailer-on-flat-car (TOFC) service, adding that adding private intermodal containers through this deal provides it with an opportunity to continue to grow on the intermodal side.

Adding containers to its intermodal lineup is something USA Truck been planning on for more than two years, said Chad Van Kooten, USA Truck vice president of sales and intermodal, in an interview.

“The container-on-a-flat-car (COFC) market is something we wanted to get into, but we wanted to have a better understanding of it, so we introduced the TOFC service, which is still the majority of intermodal business we do today, first,” said Van Kooten. “We saw this as a great opportunity to introduce containers to our customer base and further diversify our intermodal product.”

Van Kooten said USA Truck has had a relationship—BNSF’s run of TOFC products—since it got into the intermodal sector. He explained that BNSF knew USA Truck had wanted to get into the intermodal market for some time, which led to meetings between the companies, coupled with BNSF providing USA Truck with some intermodal containers, and a subsequent official partnership.

Van Kooten declined to disclose specifics regarding the contractual terms between USA Truck and BNSF, due to a non-disclosure agreement between the companies.

“Our customer base is very diversified; we will introduce this product to some of our core customers and also those outside of core customer base,” he said. “It also gives us a bigger slice of the rail intermodal business.”

And as freight transportation capacity has tightened over the last several months, Van Kooten said USA Truck expects to be able to offer shippers additional capacity through this partnership.

This news is reflective of the increased traction domestic intermodal continues to gain in recent quarters, especially on the container side. As an example, the Intermodal Association of North America (IANA) recently reported that domestic container loadings in the second quarter at 1,128,108 were up 16.4 percent.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

less than one percent of all U.S. businesses export, and of those that do, the majority interacts only with NAFTA trading partners Mexico and Canada.

Seasonally-adjusted (SA) for-hire truck tonnage in April at 134.8 (2000=100) fell 2.1 percent from March and on the heels of a 4.4 percent February to March decrease.

The current price at $2.357 per gallon saw a 6-cent increase on the way to its highest weekly price of 2016 based on EIA data. And it is also the highest price since the week of December 14, when it was at $2.338 per gallon.

As e-commerce growth and demand goes, so goes the increased need for e-commerce fulfillment centers and distribution centers, according to the debut issue of the Global Prime Logistics Rents report recently issued by global commercial real estate firm CBRE Group Inc.

In this new world of Omni-channel—profitable and efficient anytime, anywhere fulfillment is the goal.

Article Topics

News · Container · Intermodal · IANA · BNSF · Trailers · TOFC · COFC · USA Truck · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA